If you are an entrepreneur, then your business is considered one of the main assets in your life. It may be that you have built it from scratch, or you have taken it places once it was handed over to you, but the value of it represents the culmination of your life's work. When it holds such an important place in your life, its essential that you understand the value of your business and how, much it's worth in the current market.

It may be that you are considering a retirement and plan to sell your business, or you are planning ahead for your future exit from the industry, or it may even be that you are trying to raise finance for your business or thinking of bringing in an investor/partner to take your business forward. All of the above processes require that you have a good understanding of what your business is worth in the current market. Because it is only with this knowledge you will be able to make sound decisions in order to make these deals work optimally.

You can go about getting an accurate idea of your business's value by means of an independent valuation through a company which provides valuation services. Valuation of a business is a complicated process that requires a high level of knowledge, skill and expertise in order to give you accurate results. It involves a lot of technical work, which means those who are responsible for it need to have a thorough financial knowledge.

They have to have to study your business and the market in which it operates extensible, understand the income statement, balance sheet and cash flow of the company. They need to have a clear idea about your business's growth strategy and business model. They have to consider the major contributing factors to the business as well the macroeconomic factors which may affect it. Since the process is long and complicated you will, want someone who is capable of doing a thorough job, as valuers in Sri Lanka. It is for this very reason that you need to opt for a valuation company which has years of experience in their repertoire such as USLS Valuers.

There are number of different valuation methods that can be used, and it has to be noted that a good valuation company does not simply use one method only. Even though you are able to generate a theoretical value for the business, you also need to consider the commercial reality of buying and selling a business when quoting a price.

When you have a professional valuation for your business, you will be at an advantage when selling it, because your counterpart will be convinced of its true value, just as you are convinced about it. This will help you manage your expectations and enable you to gain the maximum that you can from the deal. Without the correct valuation you will be lost when it comes to quoting a price for your business and you are always running the risk of underselling the business or quoting unrealistically high prices for it, which will cost you the possibility of going forward with potential transaction.

So, when choosing you valuation expert, you need to make sure that they have the knowledge, skill and expertise required to dig deep into your business and come up with the best possible valuation. Choose someone who has had experience in successfully buying and selling a business, so that the final result you get from them is a reasonable one, allowing you to make a well-informed decision.